Samsung Electronics announced today that it has withdrawn its membership from the top business lobby of South Korea after the Federation of Korean Industries was also blamed for its role in the country’s corruption scandal that has resulted in the impeachment of President Park Geun-hye. Samsung has submitted a formal document of withdrawal to the federation and other affiliates of the Samsung Group are expected to do the same very soon.
This wasn’t an expected move because the Samsung heir Lee Jae-yong did tell the country’s lawmakers during a parliamentary hearing in December last year that the conglomerate would leave the Federation of Korean Industries. Other companies like LG Group and KT Corp. have already announced their withdrawal from the FKI which includes about 600 member companies.
Samsung remains under investigation in the corruption scandal as the company is claimed to have paid more than $35 million through a close personal friend of the president to win influence. The Samsung heir recently dodged arrest in this case but he or his company is not out of the woods just yet.